FTSE 100 live outlook prediction analysis for 19th December 2019
The pound continued to wind down after its sharp spike last Thursday night and sharp fall on Tuesday, easing pressure on the FTSE 100, many constituents of which favour a weak sterling. That relief allowed the blue-chip FTSE 100 to outperform its continental peers, despite clocking up only moderate gains during the session. The FTSE 100 closed 0.21pc higher at 7,540.75 and the FTSE 250 fell 0.12pc to 21,663.13.
London’s markets settled a little after several days of post-election volatility. The FTSE 250 – which has been seen as a bellwether for Brexit sentiment through the three and a half years since Britain voted to leave the EU – was flat during the day, but remains solidly higher than where it stood before the election.The index hit an all-time high on Monday.
Blue Moon
This doesn’t happen often. Donald Trump’s legacy will be forever marked by his impeachment at the hands of House Democrats on Wednesday evening local time. The House convened Wednesday morning for what is expected to be hours of debate before a vote that is all but certain to result in Trump becoming the third U.S. president in history to be impeached. The lawmakers gathered in the well of the chamber, as their predecessors did when they voted to impeach Andrew Johnson in 1868, and Bill Clinton in 1998. Opening the debate on the two articles of impeachment, House Speaker Nancy Pelosi called Trump an “ongoing threat to our national security,” and declared that, “If we do not act now, we would be derelict in our duty.” Meanwhile, Republican Representative Doug Collins of Georgia, a leading defender of the president during Judiciary Committee hearings, said the president did nothing wrong. Trump, on the other hand, vented his anger on Twitter, writing that the allegations against him were “SUCH ATROCIOUS LIES BY THE RADICAL LEFT, DO NOTHING DEMOCRATS.” The House is currently in the full swing of the debate.
Markets Muted
Asian stocks looked set to drift as investors sit on the sidelines with little in the way of fresh catalysts, while treasuries retreated. Futures slipped in Japan and Australia, and were little changed in Hong Kong. U.S. stocks ended flat, a day after the S&P 500 Index reached another record amid encouraging economic data. With trade worries dormant, at least for now, after a partial U.S.-China deal was hashed out, investors are keeping an eye on impeachment proceedings in the U.S. The dollar strengthened against its major G-10 peers, and ten-year treasury yields climbed above 1.90% — the highest in more than four weeks. Global stocks are close to all-time highs, though with the U.S.-China trade accord announced Friday yet to be signed, traders are finding few reasons to bid prices higher. Meanwhile, West Texas crude rebounded after a bullish U.S. inventory report and the pound extended its losses after tumbling Tuesday on renewed concern that a no-deal Brexit is possible.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
The bulls have managed to push through the 7535 resistance level and make it stick, despite the drop off the 7355 yesterday. 7530 is now locking in as decent support and we could well be on for the rise towards the 7650 level, or even higher. For today the daily pivot is also going to act as support which is at 7535 today, and if we were to dip back down to that area it may well act a spring board for the push higher. The 2 hour resistance is now at 7601 so a rise to this would make sense, though there is a key fib at 7588, 20 day Raff channel top and R2 at 7596.
The S&P hasn’t made much of an attempt to dip down to close that 3173 gap level, though it was quite flat yesterday around the 3195 level, even ignoring the impeachment news! 2 hour resistance on the S&P is now at 3204 so should we get a rise to this area then we may well see some bearishness here.
If the FTSE bulls were to break above the 7600 level today then we may well see more buying as the FOMO (Fear of missing out) kicks in and no one wants to miss the Santa rally. Though with the election etc its already helped the bulls out massively. That buying would take us up to 7650, and we then have the top of the 10 day Raff at 7710 – and we are on track for the year end around 7700 that was mentioned a while back. That said, I really wouldn’t be surprised if we dip today and tomorrow and then Monday sees the buying again!
However, should the bears break below the 7520 level then we still have daily support way down at 7357 for the moment, though that does seem rather bearish to get there. Never know though! Prior to that though and more likely in the near term is support at the 7490 level where we have a key fib support, and also the rising 200ema on the 30min chart. 7435 is also the bottom of the strongly rising 10 day Raff channel and may well hold should it get tested.
So, looking for a drop down to 7535 initially and if that holds then a rise towards 7600. A break of 7535 likely leads to 7435. A break of 7600 likely leads to 7650, 7710. Good luck today.
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